New Delhi: It continues to rain jobs in the Indian economy and, if a survey by global employment consultancy firm Manpower is to be believed, Indian Inc is going to hire many more people in the third quarter of 2007.
The survey says as the economy continues to gain strength, hiring by India Inc is expected to remain strong in the third quarter of this fiscal with as many as 42 per cent corporates planning to recruit more.
The survey, released on Tuesday, says of the 27 countries and territories surveyed globally this quarter, the hiring intentions continue to be robust in India with an eight percentage points quarter-over-quarter increase in the overall Net Employment Outlook. On a year-over-year basis, however, it shows a 4 percentage point decrease, the survey says.
However, among the eight countries and territories surveyed across the Asia-Pacific region, only Indian employers are anticipating a third quarter outlook stronger than the previous quarter.
Out of the 4,925 employers interviewed in 30 Indian cities in seven core sectors, 42 per cent expected an increase in staffing levels in the Q3 2007. While 3 per cent anticipate a decrease, 42 per cent expect no change, putting the country’s employment outlook at 39 per cent.
According to the survey, employers in the service industry have the most optimistic outlook at +46 per cent and those in public administration and education show the weakest hiring intentions at +27 per cent.
Hiring intentions in finance, insurance and real estate industries too were found to be very strong with an increase of 13 percentage points in the Net Employment Outlook. This is the first improvement since the fourth quarter of 2006. Outlooks in five out of the seven industry sectors have improved quarter-over-quarter.
"The continued confidence and global competitiveness of the Indian information technology sector has fuelled the increased activity in the labour market," Soumen Basu, Executive Chairman of Manpower India, says.
According to Basu, the IT and IT-enabled services industry is expected to increase its contribution to the gross domestic product (GDP) this year and this growth will certainly augment hiring activities.
While employers in the Services sector report the most optimistic outlook with the Public Administration and Education employers indicating the weakest hiring intentions with a Net Employment Outlook of . Hiring intentions in the Finance Insurance & Real Estate industry are considerably stronger quarter-over-quarter.
In India, the survey covered seven key industry sectors including finance, insurance, real estate; manufacturing; mining and construction; public administration and education; services; transportation and utilities; wholesale and retail trade.
On year-over-year, however, the mining and construction sector employers reported the largest decline in hiring activity — down 12 percentage points. Transportation and utilities and wholesale and retail trade sectors both reported an improvement of 1 percentage point, while no change was reported in the manufacturing sector.
In regional trends, employers in the South are the most optimistic with a Net Employment Outlook of +44 per cent — an improvement of 13 percentage points over the previous quarter — while hiring intentions are weakest in the North at +33 per cent — 2 percentage points weaker than previous quarter.
Employers in the East expect robust hiring activity in this quarter, with an improvement of 11 percentage points over the previous quarter. Employers in the West reported a Net Employment Outlook of +41 per cent, which too is an improvement of 12 percentage points as compared to the previous quarter.